“BUT I HAVE TO DIE TO GET IT.”
That is what my client told me after I showed him an IRR of 8% to his life expectancy.
Life insurance proceeds are generally received income tax-free by the beneficiary. So, think about (assuming a 20% tax bracket) what you would need to grow your taxable investment to in order to net $1,000,000. It would need to grow to approximately $1,250,000. The Life insurance companies that offer Indexed Universal Life can provide an IRR report which tells you what the equivalent rate of return is on your premium dollars as it relates to the death benefit at your life expectancy. If you are a preferred risk, the rate of return can be in the 7% to 8% range.
If you could invest your money in a financial instrument that would guarantee a 7% to 8% return to your life expectancy, I think you would be interested. The problem is you have to die to get it.
If you can get past this and would like a quote, please let me know.